NZX50 dips as probe into Fed’s Powell sours US futures

Rakon soars on $354m takeover offer.

Monday, January 12th 2026, 6:35PM

by Paul McBeth

New Zealand’s S&P/NZX 50 index nudged lower in a mixed day on the local board, following US futures lower after Federal Reserve chair Jerome Powell said the central bank had been served with a subpoena threatening criminal indictment over his testimony to the Senate banking committee about the Fed’s ongoing office renovation

Electricity generator-retailers were split, with heavyweight Meridian Energy a drag on the benchmark, as ministers Simon Watts and Scott Simpson tagged the sector as next in line for open consumer data, making it easier for people to shop around.

Retailers were broadly stronger after Bureau of Statistics figures showed consumer spending across the Tasman beat expectations in November, buoying the likes of KMD Brands, Hallenstein Glasson Holdings and Michael Hill International, who’ve got footholds in Australia.

And Rakon soared to a three-and-a-half year high as the components maker attracted the first local takeover of the year, with privately-held American firm Bourns intending to lob in a $356.2 million offer for the company, having locked in about 41% before the papers have been lodged.

Reserving judgement

The NZX50 fell for a second day, slipping 12.96 points, or 0.1%, to 13,683.29, with 19 stocks declining, 26 gaining and five unchanged. Turnover across the main board was $102.3 million, of which Auckland International Airport accounted for $9.2 million as it increased 0.7% to $8.60.

The benchmark index wavered through a broadly positive day across Asian markets, ultimately tracking US futures lower, with S&P 500 futures down 0.5%, after Federal Reserve chair Jerome Powell said the central bank was served with a subpoena threatening criminal indictment over his testimony relating to the Fed’s office upgrade when appearing before the Senate banking committee.

Powell said the threat isn’t about his testimony, rather it’s about the Fed setting interest rates based on the federal open market committee’s best judgement rather than following US President Donald Trump’s preference for sharp cuts.

“This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions – or whether instead monetary policy will be directed by political pressure or intimidation,” Powell said in a statement.

The greenback was broadly weaker after the release, with the kiwi recovering its earlier dip to trade at 57.44 US cents at 5pm in Auckland from 57.43 cents last week.

Flight to safety

Gold futures surged 1.9% to US$4,585, buoying mining stocks on both sides of the Tasman and underpinned gains for Australia’s S&P/ASX 200 index, up 0.4% in late trading.

Dual-listed Santana Minerals climbed 7.1% to $1.205, while Manuka Resources jumped 18% to 18.6 cents, while Minerals Exploration dipped 3.9% to 24.5 cents and New Talisman Gold Mines fell 8.3% to 2.2 cents.

Grant Davies, an investment adviser at Hamilton Hindin Greene, said the benchmark index had been fairly flat on the day ahead of US corporate earnings season, with the major banks the main firms reporting this week.

“Expectations are pretty high and hopefully some of those are met,” he said.

Meridian Energy was the biggest drag on the NZX50 as it fell 1.9% to $5.55 in a mixed day for gentailers after energy minister Simon Watts and commerce minister Scott Simpson said the electricity sector will be the next to come under the consumer data regime. Contact Energy declined 0.7% to $9.23, while the two biggest retailers rallied, with Mercury NZ up 0.2% at $6.59 and Genesis Energy gaining 0.4% to $2.45.

Channel Infrastructure led the benchmark index lower, falling 2% to $2.91, while Goodman Property Trust declined 2% to $1.98.

Spark New Zealand was the most heavily traded stock with a volume of 2.8 million as it slipped 0.4% to $2.30.

Utilities software firm Gentrack posted the biggest gain on the day as it rose 3.2% to $8.40.

Showing the money

Retailers were broadly stronger after Australian data showed consumer spending grew at a faster pace than expected across the Tasman, where many have expanded their chains. Meanwhile, ASX-listed Super Retail dropped 5.5% in late trading after cutting its first-half earnings guidance, with its Macpac and Rebel brands accounting for the skinny margins.

Briscoe Group, which operates Rebel Sport in New Zealand, rose 1.9% to $5.26, while outdoor equipment chain KMD Brands gained 1.8% and Hallenstein Glasson Holdings advanced 1.5% to $10.05. Outside the benchmark, Michael Hill International jumped 6.6% to 48.5 cents and Warehouse Group increased 2.7% to 75 cents.

Rakon posted the biggest gain on the day across the main board, surging 51% to $1.36 after the components maker said private-held US manufacturer Bourns intends to mount a takeover at $1.55 a share, and has locked 41% acceptances including the founding Robinson family and Siward Crystal Technology.

The stock hit $1.40 through the day, the highest it’s been since August 2022.
Hamilton Hindin Greene’s Davies said it was a shame to see the company depart the NZX, having been listed since 2006.

“It’s an interesting company – they had to reinvent themselves when crystal oscillators became more commoditised and they kept on trucking,” he said.

The Bottom Line

Paul is a staff writer for Good Returns based in Wellington.

Tags: Market Close